Canadians eligible for up to $10 million CIBC settlement over duplicate NSF fees

CIBC has agreed to a proposed $10-million settlement in a class-action lawsuit over non-sufficient funds (NSF) fees charged multiple times on single payment attempts.

According to the allegations, the bank charged customers repeated $45 NSF fees when they made a second attempt to process a declined transaction. In one example cited in court documents, an Ontario plaintiff attempted a $7.90 PayPal payment that was declined due to insufficient funds, incurring a $45 fee. The same payment was later declined again, resulting in a second $45 charge for a single attempted payment.

The class action, certified by the Ontario Superior Court of Justice in June 2024, argues that CIBC's customer agreement specifies one NSF fee per "item," but the bank's practice contradicted that policy. The lawsuit also alleges CIBC violated the Consumer Protection Act through unfair and deceptive practices.

You could be eligible if you held a personal deposit account with CIBC and were charged multiple NSF fees on a single payment or cheque since January 1, 2012. You do not need to sign up — eligible class members will be automatically included. If approved, CIBC will directly deposit settlement funds into eligible accounts.

A court hearing is scheduled for October 19, 2026, to decide whether to approve the settlement. CIBC has not admitted liability and denies the allegations.